Business Industry Analysis Updated

User Generated

FjrrgGevavG

Business Finance

Description

Each Section need updating : See attached paper with the Professors notes

Industry Review Section:

1) Research industry averages for profitability in your marketplace. Use this information to determine the validity of your own projections and make changes if necessary. So what is the profitability average? I see gross totals but nothing in terms of what is considered a “good” margin or any ratio data.

Regulations and Legal Concerns Section:

1) Determine your location and business environment= HENRICO, Virginia in the United States , Address: 9101 Patterson Avenue, Henrico VA

Address all legal, zoning, and licensing concerns your business will face. What form of business will you set up? Why? The level of detail required for this section will depend on your type of location (virtual, retail, warehouse, office, restaurant, etc.) and on your idea. Demonstrate that you have completed your research. DON'T say "We will obtain all of the appropriate permits"; instead, summarize them. When you explain your form of business—remember your audience. For example, if you select an S corporation, explain your reasoning for that selection in the context of your potential business, rather than providing the definition of an S corporation. Address any pending regulations which may have an impact on your business. Where is this located? What permits or licenses are required? This needs significantly more details.

Competitive Analysis Section:

1) Describe the competitive landscape. Who are the key competitors? What are their strengths and weaknesses? Approximate their market shares. How will you take share from them? How will they most likely try to stop you if you are successful? Who are your indirect competitors? What do they offer your prospects? Who is your competition? What other consulting firms are competing with you and could offer the services you are providing?

SWOT Analysis Section: Automotive Consulting Firms SWOT Analysi

1) Identify your company's major strengths, weaknesses, opportunities, and threats. Describe how you plan to maximize your strengths and opportunities and minimize or mitigate your weaknesses and threats.

Unformatted Attachment Preview

Running Head: EASTERN-CENTRAL CONSULTING & IT FIRM INDUSTRY ANALYSIS 1 Eastern-Central Consulting & IT Firm Week 3 Industry Analysis: Baraah El-Haik, Jacob Fleener, Rachel Hutchinson, Teneasha Leak, and Thalia Douglas. Keller School of Management Professor: Russell Fail Date: 1/21/18 EASTERN-CENTRAL CONSULTING & IT FIRM INDUSTRY ANALYSIS 2 TABLE OF CONTENTS Industry Analysis ............................................................................................................................ 3 Industry Analysis ......................................................................................................................... 3 Regulatory Review ...................................................................................................................... 4 Competitive Analysis .................................................................................................................. 4 SWOT Analysis: ...................................................................................................................... 5 Works Cited .................................................................................................................................. 10 ‘ EASTERN-CENTRAL CONSULTING & IT FIRM INDUSTRY ANALYSIS 3 INDUSTRY ANALYSIS INDUSTRY ANALYSIS The Industry analysis will discuss the economic climate of the consulting industry along with discussing the current trends in the consulting industry. The financial condition of the market at present in the USA is growing very slowly. In the economy, this stoppage has also significantly affected sales of real estate, and it has stopped to historic lows. Numerous economists expected that this slow growth would remain same for a substantial period, at which point the economy will begin a continued period of recovery. Consulting firms, however, are expected to perform well in any climate of the economy as, throughout deadly conditions of the economy, business managers and owners will necessitate specified advice on the way for keeping their organizations lucrative (Galal, 2014). The consulting industry is a very fragmented group of large auditing institutions, small firms, and individual practitioners. In the United States, there are more than 621,000 consulting firms (Galal, 2014). The industry generates over $38 billion along with hiring over 340,000 workers (Galal, 2014). The consulting services demand is expected for increasing as organizations look for outsourcing advisory of non-core functions along with an analysis of the project to private agencies. Furthermore, as the economy keeps on to having particular needs of labor, the organization can continuously employ newer workers with a limited proficiency that will provide educational research to the clients concerning their specific issue of business. As mentioned above, the consulting agency aims at providing a multitude of development of industry and linked consulting services, which will enable the company for balancing its economic risks by operating in the middle of the number of industries (Galal, 2014). EASTERN-CENTRAL CONSULTING & IT FIRM INDUSTRY ANALYSIS 4 REGULATORY REVIEW It is remarkable to investigate the way the policy of U.S. government has unintentionally impacted the consulting industry's growth and development. The antitrust regulation of the 1930s was essential and the first catalyst, prohibiting conspiracy and the anticompetitive information sharing amid bankers, thus producing the corporate investigations' critical mass and benchmarking work for what is a well-known strategy a present. The 2002 Sarbanes-Oxley Act became the reason for consulting industry to experience mitosis as audit organization spun off their consulting divisions, and then a newer consulting practice developed in each audit firm a few years later. Likewise, Sarbanes-Oxley established a tidal wave of newer work for providing revenues for the audit-based and other consulting organizations. But perhaps nothing has been much help to the consulting industry's development as the government's buying power since the public sector usually competes with the sector of financial services to be the largest spender on consulting services (Perchthold & Sutton, 2010) COMPETITIVE ANALYSIS Industries of professional service, for instance, consulting services, have low obstacles to imitation in contradiction of asset-specific and regulated industries, such as pharmaceuticals or banking. Additionally, because of the missing formal consulting protection as a profession, there is a comparably easy market entry. In such industries, comparably there is limited first mover advantage, and attempts of imitation are more expected to be successful in the long run. Though, steadiness in the provision of consulting service and subsequent experience raise awareness of the clients for a trustworthy, legitimate consulting firm (Kipping & Engwall, 2002) EASTERN-CENTRAL CONSULTING & IT FIRM INDUSTRY ANALYSIS 5 With this in mind, Eastern-Central Consulting firm faces higher rivalry for resources along with for Volkswagon. The benefits for Eastern-Central Consulting firm to position itself near to established businesses include the possible for spillover effects, reduced uncertainty, increased legitimacy and might be offset by the problems of not being capable of forming a distinct position in the market. Eastern-Central Consulting firm separately proposes their services from the other companies with the intention of raising the attention of Volkswagen along with for achieving the above-average returns (Kipping & Engwall, 2002). With the aim of following a differentiated strategic positioning, Eastern-Central Consulting firm tries for offering services with extraordinary attributes that are highly appreciated by Volkswagen. The potential for profits that are above average increases when clients are ready for paying a price premium that surpasses the further costs of providing a differentiated service. Eastern-Central Consulting firm's differentiation comprises quality of services, human capital, expert knowledge offerings, service specialization, brand image, or other differences in the models of service that differentiate Eastern-Central Consulting firm from current service offerings. Additionally, positioning distant from rivalry shields Eastern-Central Consulting firm from the clients' bargaining power along with protecting in contradiction of substitutes. Furthermore, this positioning leads to a lower sensitivity of price and thus limits competition. Due to this, within the small competition environment, Eastern-Central Consulting firm is facilitated for gaining edges from the pricing of their services (Carmeli & Tishler, 2004). SWOT ANALYSIS: Strengths, Weaknesses, Opportunities, and Threats or SWOT is the analysis of an organization that covers the four apparent areas of interest. It is used to determine what a company EASTERN-CENTRAL CONSULTING & IT FIRM INDUSTRY ANALYSIS 6 can and cannot do internally and externally. "A SWOT analysis determines what assists the firm in accomplishing its objectives, and what obstacles must be overcome or minimized to achieve desired results: where the organization is today, and where it may be positioned in the future" (Investopedia, LLC, n.d.) F IGURE 1: A UTOMOTIVE C ONSULTING F IRMS SWOT ANALYSIS : Strengths Weaknesses • • • • Lack of competition: Automotive consulting to consumers is an unexplored awareness among the consumers with area of consulting. regard to this area of consulting. Low Cost: Automotive consultation to the • Lack of dealer support: Automotive consumers requires a low amount of consulting lacks dealers support because it investment. can reduce their profits by providing Knowledge: The possession of vast proper guidance to the consumers. amount of knowledge related to the • automobiles is the key strength of the business. • Lack of awareness: There is lack of One-time customers: The business mainly deals with one-time customers. • Slow growth rate: This type of business Attractive offers: The attractive offers to is expected to grow slowly as customers the clients where they are required to pay will take time to realize the benefits of consulting fees only if they are able to this form of consulting. save a minimum of $ 100 due to the consultation. EASTERN-CENTRAL CONSULTING & IT FIRM INDUSTRY ANALYSIS • No licensing: The Company does not require any license to conduct the business. • Networking: The networking of the business with the customers and suppliers will provide the opportunities to the business to grow its customer base. Opportunities Threats • • Increasing demand for cars: With the increasing demand for cars the consulting licensing the competitors can easily enter is likely to gain acceptance among the the industry. consumers. • • Unwillingness on the part of dealers: Growing technological complexities: The dealers’ unwillingness to support the With growing complexities in the services can hamper the growth of the technology the consumers will be more business. willing to make use of the consulting • Ease of Entry: With no requirement of • Financial crisis: The financial crisis and services. increasing interest rates affects the Lack of professionalism among dealers: demand for vehicles which can hamper The lack of professionalism and the growth of the business. consultation on the part of the car dealers • Government regulations: The will attract the customers to this form of regulations of the government hindering consulting. the scope of the automotive consultation 7 EASTERN-CENTRAL CONSULTING & IT FIRM INDUSTRY ANALYSIS • Untapped market: Being a new area of can adversely affect the scope of the consulting provides immense business. 8 opportunities to the business to capture the untapped market. Through conducting a SWOT analysis and customer profile research, we were able to identify Volkswagens current brand image as one of the most challenging factors that we have to take into account while developing a target customer. F IGURE 2: V OLKSWAGEN SWOT ANALYSIS : Strengths Weaknesses - - Largest brand compilation of all vehicle companies - Divergent brand strategy - Co-action between brands - Collective enterprise with local emissions scandal - Global Operation - Has developed acquiring strategies - Diverse manufacturing plants and - Local markets have a very high recall rate - United States and India markets are minuscule automakers - Negative brand association due to - Behind competitors in the electric market - Majority of brands are not locations environmentally compatible to current Dedicated workforce social norms EASTERN-CENTRAL CONSULTING & IT FIRM INDUSTRY ANALYSIS - 9 Model association is not equivalent across their inventory - Competition from competitors is affecting profit margins - Opportunities - Price of fuel has the potential of going up - - Euro exchange rate is decreasing - Coming clean on the emissions scandal and starting fresh - Threats - Profound competition - Continuing fallout and costs from emissions scandal Acquisitions provide the key skills and proficiency for success - - Technology innovations - Brand explosion in China - Green opportunities are limitless Increasing local and government regulations - Raw material prices continue to increase - Global economy’s threat of a downward spiral Increase on the U.S. and Indian market share Stock prices are on the decline - Local public transportation - Inventive innovations by their competitors - Loss of the competitive advantage EASTERN-CENTRAL CONSULTING & IT FIRM INDUSTRY ANALYSIS 10 REFERNCES Carmeli, A., & Tishler, A. (2004, September-November). Resources, capabilities, and the performance of industrial firms: A multivariate analysis. Managerial and Decision Economics, 25(6-7), 299-315. Galal, K. (2014). Strategic Positioning in the Consulting Industry: An Emperial Analysis of Strategic Groups and Performance. Josef Eul Verlag GmbH. Investopedia, LLC. (n.d.). SWOT Analysis. Retrieved from Investopedia: https://www.investopedia.com/terms/s/swot.asp Kipping, M., & Engwall, L. (2002). Management Consulting: Emergence and Dynamics of a Knowledge Industry. Great Clarendon Street: Oxford University Press. Perchthold, G., & Sutton, J. (2010). Extract Value from Consultants: How to Hire, Control, and Fire Them. Austin, Texas, United States: Greenleaf Book Group Press.
Purchase answer to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

Here you go. Please check it out now.

Running Head: EASTERN-CENTRAL CONSULTING & IT FIRM INDUSTRY ANALYSIS

Eastern-Central Consulting & IT Firm
Week 3
Industry Analysis:
Baraah El-Haik, Jacob Fleener, Rachel Hutchinson, Teneasha Leak, and Thalia Douglas.
Keller School of Management
Professor: Russell Fail
Date: 1/21/18

1

EASTERN-CENTRAL CONSULTING & IT FIRM INDUSTRY ANALYSIS

2

TABLE OF CONTENTS
Industry Analysis ............................................................................................................................ 3
Industry Analysis ......................................................................................................................... 3
Regulatory Review ...................................................................................................................... 4
Competitive Analysis .................................................................................................................. 5
SWOT Analysis: ...................................................................................................................... 7
Works Cited .................................................................................................................................. 12



EASTERN-CENTRAL CONSULTING & IT FIRM INDUSTRY ANALYSIS

3

Industry Analysis
Industry Analysis
The Industry analysis will discuss the economic climate of the consulting industry along
with discussing the current trends in the consulting industry. The financial condition of the market
at present in the USA is growing very slowly. In the economy, this stoppage has also significantly
affected sales of real estate, and it has stopped to historic lows. Numerous economists expected
that this slow growth would remain same for a substantial period, at which point the economy will
begin a continued period of recovery. Consulting firms, however, are expected to perform well in
any climate of the economy as, throughout deadly conditions of the economy, business managers
and owners will necessitate specified advice on the way for keeping their organizations lucrative
(Galal, 2014).
The consulting industry is a very fragmented group of large auditing institutions, small
firms, and individual practitioners. In the United States, there are more than 621,000 consulting
firms (Galal, 2014). The industry generates over $38 billion along with hiring over 340,000
workers (Galal, 2014). The consulting services demand is expected for increasing as organizations
look for outsourcing advisory of non-core functions along with an analysis of the project to private
agencies. Furthermore, as the economy keeps on to having particular needs of labor, the
organization can continuously employ newer workers with a limited proficiency that will provide
educational research to the clients concerning their specific issue of business. As mentioned above,
the consulting agency aims at providing a multitude of development of industry and linked
consulting services, which will enable the company for balancing its economic risks by operating
in the middle of the number of industries (Galal, 2014).

EASTERN-CENTRAL CONSULTING & IT FIRM INDUSTRY ANALYSIS

4

The consulting services industry has performed very well in previous few years. According
the 3rd quarter of 2017. The gross margin of the industry was 54.45%. The operating margin of the
industry was 12.52% and ...


Anonymous
Excellent resource! Really helped me get the gist of things.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Related Tags